Since I can remember, there has been this misnomer regarding young emerging growth companies that they had no place in the public markets. The stock market was for IBM, Apple and Home Depot.
Surprise, surprise! This is simply not the case and it has not been so for a very very long time… the regulations have been the same forever.
While it may be cost-prohibitive for many companies (and I say may, bacause it is not the rule and there are also creative solutions), it is definitely possible for a company in almost any stage of business to file a public registration statement with the SEC, have a market maker file their 15c211 with Finra and get listed on any of the U.S. exchanges.
Of course it is not as easy as all that, but is a lot more of a viable option then it is given credit for in the industry. The reasons are shamefully obvious. If companies were to direct their own public offerings or conduct DPOs as it were, they would by definition, be cutting out the very prestigious, indispensable and handsomely (if not handsome) paid underwriter (in another life, I am that underwriter). Until today this really had no chance to ever surface. The tentacles of social connectivity simply were not yet long enough.
Facebook, Linkedin, Google+, YouTube, the tentacles are getting pretty long. Long enough to entangle the entire globe in a crowdfunding frenzy and make many investment bankers come to a stark realization… there is a new competitor on the horizon…. EVERYONE….the CROWD is coming…
Check out this video to learn how to get it done solo.